Last year’s protests in Chile have caused commercial insurance premiums in the region to more than double, according to reports from Reuters.
The publication said that damage caused by the protests had resulted in insurance hikes for shops and offices.
The Chilean economy is estimated to have taken a $3 billion hit following weeks of strikes, marches and damage to property and public transport.
International insurers were reportedly caught off guard by the length of the unrest, in a country that had previously been regarded as low risk.
Sources at Reuters said that many companies are now seeking to reduce their exposure to political violence coverage in the country, with some even withdrawing from the market completely.
And with a potentially controversial referendum set for April, the market is unlikely to settle any time soon.
Steve Dalchow, Executive Director in Crisis Management at Gallagher, told Reuters that it could take up to two years for the market to return to normal.
Analysts at KBW believe the protests will have a clear impact on the fourth quarter results of may international insurers, with Mapfre already estimating that the riots – in combination with Japanese typhoon losses – could cost it up to €140 million.
